Part 2: Timeliness of annual reporting

2.1
In this Part, we set out when local authorities adopted their annual reports and publicly released their annual reports and summary annual reports. We also discuss the importance of the statutory requirements for adopting annual reports and their public release.

2.2
The Local Government Act 2002 requires local authorities to:

• complete and adopt an annual report that contains audited financial statements and service performance information within four months after the end of the financial year;
• make the audited annual report publicly available within one month of adopting it; and
• make an audited summary of the annual report publicly available within one month of adopting the annual report.

2.3
Appendix 1 provides more detail on when local authorities adopted and publicly released their annual reports and summary annual reports.

Adopting annual reports

2.4
In 2016/17, Kaikōura District Council, Hurunui District Council, and Mackenzie District Council missed the deadline to complete and adopt their audited annual report within four months after the end of the financial year.

2.5
For Kaikōura District Council and Hurunui District Council, there were substantial earthquake-related issues to address and it took extra time to resolve the treatments and disclosures. Kaikōura District Council and Hurunui District Council adopted their annual reports on 22 November and 23 November respectively. These local authorities' priorities were, rightly, to ensure the safety and welfare of residents and then to get their day-to-day functions operating again.

2.6
Mackenzie District Council adopted its annual report on 12 December 2017.

2.7
Figure 5 shows the number of local authorities that did not meet the statutory deadline for adopting their annual reports from 2012/13 to 2016/17.

Figure 5
Number of local authorities that did not meet the statutory deadline for adopting annual reports, 2012/13 to 2016/17

Public release of annual reports and summary annual reports

2.8
Six local authorities missed the one-month deadline for releasing their annual reports to the community, and 13 missed the one-month deadline for releasing their summary annual reports. Figure 6 shows the number of local authorities that met the statutory deadline for releasing annual and summary annual reports from 2012/13 to 2016/17. Any delay undermines effective accountability, which in turn can undermine communities' trust and confidence in their local authority.

Figure 6
Performance in meeting the statutory deadline for releasing annual and summary annual reports, 2012/13 to 2016/17

* The 2013/14 statistics for public release dates do not include the local authorities that adopted their annual reports after 5 December 2014.
** Out of the 76 that had met the statutory deadline for completing and adopting the annual report.
*** Out of 77 because we excluded one local authority that failed to meet its statutory deadline.

The importance of timely reporting

2.9
Annual reports provide information that helps communities to assess how well their local authority is performing. For communities to do this effectively, the information in the annual reports must be comprehensive and timely.

2.10
Releasing annual reports and summary annual reports is an important part of a local authority's accountability to its community. The summary annual report contains the most understandable information for most readers, and it is easy to circulate and make widely available.

2.11
We consider that many local authorities need to better manage how they produce and publish their annual reports and summary annual reports.

2.12
Most local authorities publish their annual report on their website. In our view, we expect that all local authorities should be able to publish their annual reports on their website within a few days of adopting them.